Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I had about 12 different stop losses execute today the only ones that aren't presently trading at a lower value than my stop loss are two 25 share lots of NAIL at $28.75 and $28.00. Got 75 shares out of $DFEN @$18.40 and it's $17.10 now. Buybacks could be profitable..

 

MGM roasted me and I didn't even get free drinks this time.

 

Come on baby..make the point...Shooting.....craps.

 

Put in a stop limit at 5 on nrgu. Hope that doesn’t actually fill. MRO is just hopeless, I’ll let that one ride I won’t sell that one. Boring account is getting shafted too.

 

I failed to buy GPAQW yesterday, like I was suggested to.

Up 100% today.

 

Couple of questions for those who understand some of this a bit better than me:

So in my vanguard account I have a choice for a “Stop Limit” sale. Is this the way to do a trailing stop loss y’all speak of? When selecting it it gives me two spots for prices (STOP & LIMIT). Curious how to set that up with their platform.

2nd question: saw a few weeks ago that someone said their platform limited them from buying shares that were sub-$5 for new accounts. Anyone have recommendations on those that don’t?

 

I’d suggest being careful with stocks like that. Just look at HTZ, it was $5.78 on Monday and $2.20 as I type this. It’s pure luck to make money on those, it could go to $8 or $0.05, just as likely to do either.

 

NYSE is going to delist HTZ. They are appealing but I wouldn't touch them until that decision is made.

 

I was just using them as an example, but any stock that you can double your money in a few minutes, or lose most of it, isn’t something I’d buy. There are people pumping and dumping them, and speculative traders are paying them.

 

A stop limit order is not a trailing stop. It's a set price to execute a limit order. There's 2 types of stops. A stop order and a stop limit order. The first is guaranteed to execute. The second is guaranteed to give you your asking price.

Let's say you buy 100 shares of ABC stock trading at $10. It rises to $12. You think it's gonna go higher but you aren't positive. You'd be happy with a 10% or $100 return. This is when you set stop orders or stop limit orders.

You decide to set a stop order with a price of $11. As soon as the stock hits $11 dollars your order is executed and turned into a market order. If the stock falls fast it still gets executed. It just might be at a price lower then you specified.

With a stop limit order you specify $11 as the stop price and $11 as the limit price. That means as soon as that stock touches $11 dollars your stop limit order is executed. Since you have a limit of $11 if it falls fast that order WILL NOT be filled.

Here's an example. Let's say ABC releases news, like bankruptcy, after market close. In after market trading you see it fall to $10 bucks. In premarket it's down to $9.

In this example your stop order triggers because it is lower then $11. Your shares sell at market price. Let's say that was still $9 bucks at the execution of the order. You lost some coin but only 10%.

Let's say you set a stop limit instead. Since ABC opens at $9 the order is sent for execution. Because you have a limit, the lowest price you will accept, the order does not fill. It sits open. If ABC continues to fall to $5 you will have suffered a 50% loss.

Limit orders are great for buying stock because you get the exact price you want. They aren't so great as a stop order if there's a big fall. Maybe someone else can type up what trailing stop and trailing stop limit orders are. lol

Buy the pump, sell before the dump. That's where things like trailing stops make it idiot proof. I made a killing on GNUS last week only because I set a trailing stop. I held them for 15 minutes. But I agree that if you want solid, less risky exposure you stick to solid companies.

 

Agreed, it’s not for me. Got any 8% range dividends you’d suggest? I’m ok if they are a little risky, I’m looking to replace some of those reit’s that had a good yield with something else that might pay more of a premium until the next crash happens for whatever reason. There are plenty in the energy sector, but I’m not sure if I want to play in that arena.

 

I think IRM might be a good play right now. It’s yield is over 8% and I doubt they’ll cut (that’s just my guess). If they don’t, leave the money there and get 8% yield on cost, good enough for me.

 

What's T's yield currently? They haven't cut in 50 years and are usually between 5-6% depending on stock price.

 

It’s over 6% right now, but it’s also over 5% of my portfolio so I am trying not to buy more (even though I want to).

 

IDK man. If I was seeking dividends I'd be holding all dividend aristocrats. I don't think I'd mind if I had 25% T, 25% CAT, 20% XOM, and 20% PG. The other 10% I'd use to buy back in on the dips.

I'd also be selling covered calls weekly on them. That plus divs would be a solid return yearly regardless of what the underlying stock did.

 

There are a lot of regional banks that would have that yield close to that in no particular order below:

NWBI
VLY
FHN
EMCF
CCNE

To name a few they got hit pretty hard today too......

 

It’s funny you mentioned those, my portfolio allocation of what you mentioned:

T: 5.22%
CAT: 5.50%
XOM: 1.87% (only due to poor performance)
PG: 5.60%

Most of the rest are dividend aristocrats so it doesn’t keep me up at night at all.

I’d love to do the options but I don’t understand it well enough. I need to quit being so lazy and learn it and finally do it.

 

So my college aged cousin was telling me about his Robin hood account and how hes invested his stimulus check.
Then he got to telling me about nikola and how it's the next tesla except for trucks. I looked it up, has a higher market cap than ford, hasn't even sold a vehicle yet. Probably because they dont have a factory to build them in yet. wtf?

 

That’s where I’ve put a lot of extra the last month. And I added a lot to T when it has dipped below 30. I’m trying to keep a little diversity.

 

Guess with the ex div coming up and it being bumped back down a little the last 2 days I’ll grab a little more IRM.